Prairie State Wire

Carrie Musselman, a chiropractor from Eureka, Illinois, has been sentenced to 20 months in prison and ordered to repay over $2.3 million following her conviction for defrauding Medicare and twelve other insurance companies. The sentencing occurred on June 24, 2025, after Musselman was found guilty by a jury of healthcare fraud and wire fraud charges in February 2025.

The government presented evidence at the sentencing hearing before Senior U.S. District Judge Michael M. Mihm that Musselman engaged in a fraudulent scheme to steal more than $2.5 million from Medicare and other insurers. Musselman's fraudulent activities included submitting false insurance claims suggesting services were performed by medical doctors instead of mid-level providers, leading to unauthorized pay increases.

Musselman also falsely claimed that patients received services like allergy injections when they had not; instead, patients were given unapproved oral drops considered experimental and ineffective. Additionally, she misrepresented provided services, including billing for electroacupuncture devices as surgically implanted neurostimulators to receive unwarranted payments.

Judge Mihm determined that Musselman committed perjury during her testimony and noted her lack of credibility while stating she was aware of the fraud she directed and encouraged.

Acting United States Attorney Gregory M. Gilmore emphasized the case's significance as a warning against health insurance fraud: "We will seek out fraud, waste, and abuse and prosecute those who engage in it."

Linda T. Hanley from the Department of Health and Human Services Office of Inspector General highlighted the importance of holding healthcare providers accountable: "We remain committed to holding healthcare providers accountable for complying with Medicare regulations."

Christopher J.S. Johnson from the FBI Springfield Field Office underscored the agency's dedication to investigating healthcare fraud cases: "This sentencing and ordered restitution are a testament to the FBI’s commitment."

The investigation involved multiple agencies including the Department of Health and Human Services' Office of Inspector General and the FBI's Springfield Field Office, with Assistant U.S. Attorneys Douglas F. McMeyer, Bryan D. Freres, and Grace J. Hitzeman representing the government at trial.